Sensex plunges 245 points on political uncertainty, global cues

MUMBAI: The BSE benchmark Sensex tumbled over 245 points in early session today amid uncertainty over government formation in Karnataka and sustained foreign fund outflows.

The 30-share index was trading lower by 245.23 points, or 0.69 per cent, at 35,298.71.

Yesterday, the gauge had soared more than 400 points intra-day after the BJP emerged as the single largest party in Karnataka. However, it gave up all gains to end modestly lower after the Congress unexpectedly stitched up a post-poll alliance with the JD(S) and staked claim to form the government.

Sectoral indices led by bankex, PSU, oil and gas and healthcare were trading in the red, down by up to 1.90 per cent.

The NSE Nifty fell 72.85 points, or 0.67 per cent, to 10,729.

Brokers said apart from political uncertainty in Karnataka, a weak trend at other Asian bourses following overnight losses at the Wall Street dampened sentiments.

Global markets were stumped after North Korea cancelled high-level talks with Seoul and threatened to call off the much anticipated summit with the US if it was pushed into unilaterally giving up its nuclear arsenal.

Back home, trade deficit widened to USD 13.7 billion in April, which further affected trading sentiment.